Do you need to collect and remit sales tax in Montana?
Montana does not impose a general sales tax rate, however, that does not mean that businesses have no tax responsibilities in the state. For example, businesses in Montana pay income tax based on how they are registered with the IRS, and may also owe withholding taxes, natural resource taxes, or other miscellaneous taxes. Additionally, there is sales tax for lodging services (like hotels) and in resort areas with a lot of tourism like Big Sky, Red Lodge and West Yellowstone. Resort sales tax includes lodging, restaurants, ski resorts, and merchandise sold in that area, and it set at a maximum of 3%.
Visit Montana’s Business & Income Tax Division website for more information on what taxes are imposed in the state.
Do you have sales tax nexus in Montana?
Despite the absence of a general sales and use tax in Montana, businesses may still be subject to specific taxes if they have established a nexus. So, what is nexus? Nexus is created when a business has a significant presence or connection within the state, such as owning property, employing workers, or generating income. Even without sales and use tax rates, businesses with nexus may be liable for other taxes, such as corporate income tax, property tax, and withholding tax for employees. If you are unsure whether you have nexus in Montana, you can download and fill out this Nexus Questionnaire from the Montana Department of Revenue, and a Nexus Auditor will review it.
Are marketplace facilitators required to collect and remit sales tax in Montana?
When the US Supreme Court ruled in 2018 that a state may collect sales tax from remote retailers or other taxpayers located out-of-state, most states began imposing economic nexus laws for remote sellers and marketplace facilitators. However, that decision did not affect Montana, because Montana does not have a general sales tax. If you sell through a marketplace facilitator, they are not required to collect and remit sales tax for your Montana-based sales, and neither are you!
What platforms are marketplace facilitators?
Not sure what defines a marketplace facilitator? A marketplace facilitator is a platform, like Amazon, that sells goods and services on behalf of third-party sellers.
Filing Montana Sales Tax
Since there are no general sales and use taxes in Montana, there are no filing requirements.
